If you decide to go to Cancún with your friends during spring break,you cannot go to Paris with your sister in the summer.Which economic principle does this statement BEST represent?
A)The true cost of something is its opportunity cost.
B)"How much" is a decision at the margin.
C)People usually respond to incentives,exploiting opportunities to make themselves better off.
D)There are gains from trade.

Question

Quizplus · Accepted Answer

This statement represents the economic principle of opportunity cost, which is the true cost of something. In this case, the opportunity cost of going to Cancún during spring break is not being able to go to Paris with your sister in the summer. By choosing one option, you are giving up the opportunity to do something else, which is the opportunity cost.

If You Decide to Go to Cancún with Your Friends